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What is the expected return using the gordon approach

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Reference no: EM132973058

Problem 1: A firm's stock is expected to pay a $3 annual dividend next year, the current stock price is $60, and the expected growth rate in dividends is 8 percent. Using the Gordon approach, what is the expected return?

Option 1: 5%
Option 2: 8%
Option 3: 13.4%
Option 4: 13%

Problem 2: The value of a share of stock currently selling for $100 after it has a 5 for 1 split is:

Option 1: $40
Option 2: $1000
Option 3: $500
Option 4: $20

Reference no: EM132973058

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